The European Investment Bank (EIB) has approved an €800mn loan for the refurbishment of Unit 1 at Romania's Cernavodă nuclear power plant, providing a major financing boost for one of the country's largest strategic energy projects, state-owned nuclear producer Nuclearelectrica (BVB: SNN) announced on July 16.

The entire refurbishment of Unit 1  has a total estimated value of approximately €1.9bn. This amount covers the three phases of the project: preparation, actual execution (reactor shutdown) and testing. The preliminary phase of the project was already financed through a €540mn loan signed in September 2025 with a banking syndicate led by JP Morgan SE. 

The new financing contract was approved by the EIB's Board on July 15 and will require approval by Nuclearelectrica's shareholders before the company can sign the loan agreement.

The project aims to extend the operating life of Unit 1 by another 30 years, allowing it to continue generating around 9% of Romania's electricity supply between 2030 and 2060.

The EIB financing forms part of a broader funding strategy combining Nuclearelectrica's own resources with loans and guarantees from international financial institutions, export credit agencies and commercial banks.

Nuclearelectrica said the refurbishment project is currently in its second implementation phase, which includes obtaining permits, contracting engineering and construction services, procuring equipment and securing the remaining financing. Civil construction works began in 2025 and have continued this year.

The third and final phase is scheduled for 2027-2030, when Unit 1 will be shut down to undergo extensive refurbishment, including replacement of the reactor pressure tubes. Commercial operation is expected to resume in 2030 following testing and commissioning.

"The involvement of renowned international banking institutions in securing external financing for the Cernavodă Unit 1 Refurbishment Project represents a historic step for the development of the civil nuclear energy sector," Nuclearelectrica Chief Executive Officer Cosmin Ghiță said.

"It also confirms a strategic project for Romania for the next 30 years, in line with European energy and political priorities."

The company said the refurbished reactor will continue to provide clean, stable baseload electricity while supporting Romania's decarbonisation objectives.

Commissioned in 1996, Unit 1 has generated more than 150mn MWh of electricity and avoided an estimated 145mn tonnes of CO₂ emissions. According to Nuclearelectrica, the reactor has consistently achieved a capacity factor above 90%, placing it among the world's best-performing nuclear units.